Advanced strategies for farming crypto airdrops on Solana

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    In this article, we will show you how to ride the wave of crypto airdrops in the Solana crypto ecosystem by implementing advanced strategies such as: delta neutralincrease on-chain trading volume and earn yield at the same time.

    Many DeFi protocols running on Solana may release airdrops to users soon, so we encourage you to interact with your users as much as possible to prepare.

    The delta-neutral approach allows you to improve on-chain metrics while earning interest on your capital without worrying too much about market volatility.

    Obviously, there are also risks that should be underestimated in this case. Before delving into these complex operational strategies, you need to be aware of how perpetual trading, lending platforms, and more generally his Web3 applications work.

    All details are below.

    Multiple opportunities to earn cryptocurrencies from the Solana DeFi ecosystem and airdrops

    The Solana ecosystem is crypto airdrop hunter 2024 can bring you great satisfaction.

    As the number of protocols developed on top of this blockchain increases, New opportunities for airdrop farming This is especially true for protocols that don't yet have native tokens.

    After successful cases, Jito and Bonkgave each early adopter a profit with three zeros, but more and more projects are announcing incentive programs for their communities or revealing future distributions.

    One example is a decentralized market aggregation platform. Jupiterrecently announced that it will be distributing 4 billion JUP crypto tokens to its supporters.

    On January 31st, the door will open to receive tokens and over 1 million eligible addresses will be given tokens.

    There are countless other applications besides those listed here that mess with airdrops and encourage users to use them consistently.

    This only creates hype and increases on-chain metrics on Solana such as transaction volume, number of wallets, and number of transactions made.

    In particular, this story daily amount The total value of assets transferred on the networks in question increased from a value of $1 billion recorded in early October 2023 to a value of $45 billion reached on January 5th.

    Obviously, as the amount of on-chain assets being moved increases, Solana's fee income also increasesthere has been a significant increase since October.

    The number of SOLs locked in for staking on the LSD platform also continues to grow.

    The enthusiasm generated by the Jito Airdrop, which rewarded the activities of liquid stakingmore and more users are considering the idea of ​​delegating SOL on-chain through these third-party solutions.

    In fact, by doing so, in addition to earning one or more airdrops, you will earn money staking SOL cryptocurrencies and, in some cases, DeFi to generate yield.

    Compared to the beginning of 2023, the number of SOL used in LST has increased from 10 million tokens to the current 17 million tokens.a total increase of approximately $665 million.

    Solana LST Crypto Airdrop

    Solana Protocol’s delta-neutral strategy delivers returns independent of market volatility

    Considering the growing trend of cryptocurrency airdrops on Solana; Now let’s take a look at how to use advanced DeFi strategies Maximize interaction with the most promising protocols at the moment and gain yield at the same time.

    Let's talk about the delta neutral approach. It is a solution that allows investors to generate income from their capital without being exposed to risk. volatility of the cryptocurrency market.

    To eliminate market direction risk, A delta neutral strategy involves opening a position in the derivatives market at a funding rate that is paid depending on the direction of the trade, and simultaneously buying and selling the same amount of spot tokens..

    In this way, we get the delta, which is the ratio of the change in the price of the commodity to the change in the price of the underlying asset itself. This is equal to zero and eliminates potential losses associated with depreciation of traded cryptocurrencies. .

    What you get is the funding rate, and for the strategy to work, the funding rate must be higher than the cost. spot commission And obviously you have to pay for the open permanent position.

    Now, leaving the technicalities aside, let's focus on the operational level. Let's see how to implement this strategy using two Solana protocols: Drift and Jupiter.

    The goal in this case is to earn yield. maximize Chance to qualify for the Drift crypto airdrop, a persistent DEX running on Solana.

    The same mechanism can be used for other persistent applications that promise airdrops.

    Applying the delta neutral strategy to Drift and Jupiter requires: Follow these steps:

    1. go to driftselect the token to open a position based on the token with the highest funding rate.
    2. Open a short position with half of your available funds and 1x leverage.
    3. input Jupiter and buy the same amount of tokens sold short (another 50% of the available capital).
    4. You can earn additional yield by depositing spots in Drift's 'Insurance Fund' and 'Vault' sections.

    By doing so, we were able to obtain a yield by deducting Solana Chain's operating fees from the loan interest rate, and at the same time, we were able to obtain Drift airdrops.

    Potentially, you could increase your trading volume by borrowing USDC or SOL with tokens purchased spot on a lending platform as collateral and repeating previously performed steps in a loop (although in this case, liquidation It is important to be careful not to

    Careful calculation of the potential return on funding rates and other costs of operations is essential to keep everything running smoothly.

    A small piece of advice is to carefully choose the token in Drift's “Funding History” section that pays the most to open a short position (if the rate is negative, the long position will be paid).

    Clearly, there are risks to consider even with a delta-neutral strategy.: In addition to manual execution errors that can occur during long farming sessions, the DeFi platform we operate can also be affected by: hacking Or exploit.


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